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This approval allows Roshni to enhance her ownership in key entities controlling HCL Technologies
HCL Tech
The Securities and Exchange Board of India (Sebi) has granted Roshni Nadar, Chairperson of HCL Technologies, an exemption from making an open offer in relation to her proposed indirect acquisition of shares and voting rights in the company.
This approval allows Roshni to enhance her ownership in key entities controlling HCL Technologies, a strategic move aimed at facilitating smoother succession planning within the Nadar family.
As per Sebi’s order, Roshni Nadar will acquire a 47% stake in two promoter entities, Vama Sundari Investments and HCL Corporation, from her father, Shiv Nadar, the founder of HCL. These entities together hold a combined 44.34% stake in HCL Technologies. After the transaction, Roshni’s ownership in these entities will rise to 57.33%, while Shiv Nadar’s stake will decrease to 4%.
Sebi clarified that while this transaction involves an indirect acquisition of shares and voting rights in HCL Technologies, the exemption from the open offer requirement is granted because the transfer is a non-commercial transaction between immediate relatives and complies with inter-transfer norms under takeover regulations.
The overall promoter group’s stake in HCL Technologies will remain unchanged at 60.82%, and the public shareholding, currently at 38.98%, will remain unaffected.
The regulator has instructed the promoters to complete the transaction within one year and submit a report within 21 days after its completion. The exemption applies solely to the open offer requirement and does not waive compliance with insider trading or listing disclosure obligations.
This transaction is part of a larger succession plan within the Nadar family to ensure the continuity of leadership at HCL Technologies. Sebi also emphasized that the deal will not impact public shareholders or market dynamics.